What is Curve Finance (decentralized exchange)?
Curve Finance DeFi is a decentralized exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading. Launched in January 2020, Curve allows users to trade between stablecoins with low slippage, low fee algorithm designed specifically for stablecoins and earning fees.
By definition, Curve is a liquidity aggregator. But in layman’s terms, it’s a decentralized exchange that promotes the creation of liquidity — a crucial facet of any financial market — by offering incentives.
How do I trade on Curve?
Before trading, you’ll have to approve Curve to interact with your stablecoin balance, similar to most DeFi applications.
On the exchange page, select the asset you would like to convert (e.g. USDC), and the quantity (e.g. 1,000) – the exchange rate, and quantity that you will receive (including and all slippage and fees) will be displayed. The exchange rate might surprise you – that’s the power of Curve.
Curve Defi Fees
Currently the fee on all pools is 0.04% which all goes to liquidity providers. There is no admin fee.
In the future, fees and pool parameters will be decided by a DAO.
How do I provide liquidity to Curve?
Curve uses cTokens, or Ytokens assets for lending while market making, as the liquidity pool – this ensures that assets are always being put to work.
You can deposit plain stablecoins – DAI/USDC/USDT/TUSD/BUSD/sUSD which will get converted underneath to cTokens for compound pool or yTokens for pax, y, busd pools or you can click the “Deposit wrapped” option to deposit cTokens or yTokens if you have them.
You can also deposit Bitcoin ERC20s – renBTC, WBTC, sBTC.
How to use Curve Y pool video
How to deposit BTC to sBTC pool